CASE STUDY: Costa Direct Mail Campaign

Provided by Royal Mail MarketReach
Costa used mail to bring the taste of their new blend to their most loyal customers

What was the Challenge / Background of the Campaign?

Costa had been serving its Mocha Italia blend for 44 years. But people were becoming more educated and had more choice. To keep up with customers more sophisticated palates, Costa launched Old Paradise - a series of limited edition roasts. They need to get people talking about it and trying the new blend.

What was the Campaign Objective?

Build awareness of brand and use existing Costa Coffee Club Loyalty members to drive trial of a new product before going on general sale.

What was the Solution?

Costa segmented their Coffee Club CRM database by value and behaviour. Their most loyal customers were mailed a premium pack with samples of the new blend to trial at home and a gift card inviting them to trial the new roast early. All other segments received a multivariable, personalised email programme to drive trial. Please read attached PDF for more details.

What were the Results?

Costa harnessed the power of customer loyalty and created a sense of exclusivity. 870,000 cups of Old Paradise were sold in total with 68% of these coming from coffee club members (a 28% increase in usual sales) The campaign's £387,685 incremental revenue led to an impressive ROMI of 2.3.

What were the Key Learnings of this Campaign?

Costa took the bold decision to eschew all broadcast media and harness the power of their loyal customer base, members of their Costa Coffee Club loyalty programme. By placing its Coffee Club loyalty programme at the heart of its launch strategy, Costa were able to harness the power of their customers' loyalty, match messaging to customer value and behaviour and all while promoting a sense of exclusivity.

BudgetReach & FrequencyTarget AudienceMedia Used
Contact for detailsPlease contact Market Reach for details.
All adultsBoth
All Demos
DIRECT MARKETING / EMAIL
DIRECT MARKETING / POSTAL
Campaign LocationCampaign DurationMarketing ObjectiveCampaign Type
NATIONALAll YearDRIVE TRIALSAMPLING
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